Renowned investment firm Jinglin Asset Management, led by its key figures Gao Yuncheng and Jiang Tong, has recently articulated a compelling perspective. They posit that global capital is now adopting a "level gaze" towards Chinese assets, moving beyond past biases and recognizing their intrinsic value and potential.
Shifting Allocations: A Vote of Confidence
Earlier this year, Jinglin’s investment strategy underwent a significant and public pivot. The firm decisively shifted its focus towards Chinese equities, a move that signals strong conviction. Gao Yuncheng, typically reserved in his public commentary, has been notably vocal in 2025, advocating for increased exposure to high-quality Chinese companies.
This strategic realignment is evidenced in the firm's recent 13F filing for its Hong Kong entity. The report reveals a substantial move into Chinese technology and consumer stocks. New positions were initiated in Alibaba, Intel, and Hesai Technology, a key player in the autonomous driving sector. Furthermore, Jinglin dramatically increased its holdings in existing positions, boosting its stake in Beike (KE Holdings) sevenfold and raising its investment in Trip.com by 118%. Concurrently, the firm exited positions in several major U.S. names, including Nvidia and Amazon, and drastically reduced its holding in Google.
This is not merely a narrative; it is action backed by substantial capital, demonstrating a clear belief in the long-term thesis for Chinese assets.
Core Investment Philosophy: Timeless Wisdom in a New Context
The investment philosophy guiding these decisions remains rooted in fundamental, time-tested principles. Gao Yuncheng emphasizes a strategy focused on identifying and holding "the best businesses in town." This approach echoes the enduring wisdom of investment legends, prioritizing companies with durable competitive advantages, strong pricing power, and robust cash flow generation.
In a world of significant macroeconomic and geopolitical swings, this focus on business fundamentals provides a stable anchor. The core tenets include buying a stock as if you are buying the entire company, adhering to one’s circle of competence, and understanding that the true value of an investment is realized through long-term ownership, not short-term trading.
Identifying the "Best Businesses" for the Future
So, what constitutes a "best business" in the current Chinese market? Gao Yuncheng’s portfolio highlights several key categories that are expected to drive growth and generate value:
- Next-Generation Social and Entertainment Platforms: Companies that are evolving into AI-powered ecosystems, enhancing user engagement and monetization.
- Semiconductor and Technology Enablers: Firms with essential, hard-to-replicate technology and strong pricing power, crucial regardless of who designs the end-product chips.
- Strategic Resource Holders: Entities controlling scarce resources like gold and copper, which may hold value in a shifting global monetary landscape.
- AI and Cloud Infrastructure Leaders: Providers of leading AI models and public cloud services, which are becoming essential utilities for businesses in the AI era.
- Branded Consumer Goods Conglomerates: Companies with superior supply chain management and brand-building capabilities that are capturing market share in lifestyle and outdoor sectors.
These investments are chosen for their potential to deliver strong foundational returns through free cash flow, supplemented by excess returns from undervalued assets with significant expectation gaps.
The Hong Kong Signal: A Resurgent Financial Hub
A critical development underscoring this renewed international confidence is the performance of the Hong Kong stock market. In the first half of 2025, Hong Kong emerged as the world's leading venue for IPO fundraising. This activity isn't driven by domestic capital alone; it reflects a powerful return of long-term international investors from regions including Europe, the Middle East, and Latin America.
This resurgence signifies that Hong Kong is reaffirming its role as a vital international financial center and a primary gateway for global capital seeking exposure to Chinese growth. The influx of capital fosters better corporate governance, deeper markets, and provides international investors with access to significant allocations in high-quality Chinese companies upon their listing. 👉 Explore more investment strategies
A Multipolar World and the Rebalancing of Perceptions
The overarching theme is a global transition from a unipolar to a multipolar world. This shift necessitates a recalibration of how international investors assess risk and opportunity. The previous era of underestimating Chinese industrial competitiveness and resilience is ending.
First-hand research, even during periods of heightened trade tensions, revealed the depth of China's manufacturing prowess and the strategic preparedness of its businesses. This on-the-ground reality often contrasts with external perceptions. The conclusion is that Chinese companies have collectively advanced to both ends of the "smile curve"—excelling in high-value areas like R&D, technology, and brand management, while maintaining dominance in efficient manufacturing. This complete industrial layout creates a powerful and competitive corporate ecosystem.
As global capital undergoes this reassessment, it is moving towards a more balanced, "level gaze" view. This process of rebalancing global portfolios to more accurately reflect the world's new economic reality is likely to provide a performance tailwind for discerning investors in Chinese assets.
Frequently Asked Questions
What does a "level gaze" towards Chinese assets mean?
It refers to global investors moving beyond historical biases and beginning to evaluate Chinese companies based purely on their fundamental merits—such as financial health, competitive advantages, and growth potential—just as they would for companies in any other developed market.
Why is Hong Kong's stock market performance significant?
Hong Kong's ascent to the top of the global IPO rankings in 2025 is a strong indicator of returning international confidence. It shows that long-term capital from around the world is once again viewing the market as a crucial platform for accessing China's economic growth and innovation.
What are the main types of Chinese companies attracting smart money?
Investment is flowing towards market leaders in technology enablers (like semiconductors), AI and cloud computing infrastructure, companies with scarce strategic resources, strong consumer brands, and next-generation social media platforms integrating advanced AI.
How are investors navigating geopolitical risks?
Sophisticated investors focus on bottom-up analysis of individual companies' strengths rather than making top-down macro bets. They seek businesses with such strong fundamentals and global competitiveness that they can thrive across various geopolitical landscapes.
What is a key lesson from recent market volatility?
Volatility has reinforced the importance of a long-term, business-ownership mindset. Chasing short-term hot themes often leads to poor returns, while patiently holding a concentrated portfolio of exceptional companies has proven to be a more reliable strategy.
Is this investment shift a short-term trend?
The actions described, particularly by major funds, are based on long-term structural trends, including China's industrial upgrade, technological self-sufficiency, and the global rebalancing of capital allocations. This suggests a sustained movement, not a short-term tactical shift.